Navigating Supply Chain Shifts: Key Updates for 2025
Landstar Ranks No. 9 on AJOT’s Top 50 Trucking Companies List
Recognized for its strong performance in revenue, capacity, and services
Landstar System, Inc. has earned the number nine spot on the American Journal of Transportation’s (AJOT) 2025 ranking of the Top 50 North American Trucking Companies. This annual ranking, published on January 27, 2025, evaluates companies based on key factors such as revenue, fleet capacity, and the range of services offered. Landstar’s position in the top ten highlights its continued success and strong presence in the freight transportation industry.
AJOT has been a trusted source of transportation industry news and analysis for over a century. The annual trucking company rankings consider more than 500 companies, providing a comprehensive view of the top players in the North American trucking sector. Companies that make the list demonstrate operational efficiency, reliability, and the ability to meet the evolving demands of shippers across the region.
Landstar’s ranking reflects its commitment to providing high-quality logistics solutions and its ability to adapt to industry challenges. As a leader in third-party logistics and specialized freight transportation, the company continues to expand its capabilities while maintaining a strong reputation for excellent service. With the growing demand for freight movement across North America, Landstar’s consistent recognition among the top trucking companies showcases its ability to remain competitive in a dynamic market.
For the full list and additional details on the rankings, visit the AJOT publication at AJOT’s official Top 50 List.
A new density-based classification system is coming in 2025
Upcoming NMFC Changes: What You Need to Know
The National Motor Freight Traffic Association (NMFTA) is rolling out significant changes to the National Motor Freight Classification (NMFC) system, set to take effect on July 19, 2025. This update aims to simplify and modernize freight classifications by implementing a standardized density-based scale for shipments with no handling, stowability, or liability concerns. The revised system will eliminate four existing freight classes (77.5, 110, 150, and 200) and introduce two new classes (50 and 55). These changes will impact how Less-Than-Truckload (LTL) freight is classified, requiring shippers and carriers to accurately determine the density of their freight for proper classification and rate calculations.
The main goal of this update is to improve efficiency, accuracy, and usability within the NMFC system. By shifting to a density-based scale, the classification process will be more straightforward and consistent, eliminating confusion caused by outdated static classifications. The ClassIT tool will also be updated by July 15, 2025, to reflect these changes, ensuring that all LTL agents, shippers, and carriers have access to the most current classification guidelines. Additionally, NMFTA has condensed and modernized commodity listings while introducing unique identifiers for shipments with special handling requirements to further streamline the classification process.
To prepare for these changes, shippers must ensure they provide accurate dimensions and weights for all freight shipments. Misclassifying freight under the new system may result in increased costs, delays, or penalties. NMFTA has provided a detailed guide and resources on its website, including the 2025-1 Docket, where industry professionals can review the updates, provide feedback, and attend informational sessions. NMFTA encourages all stakeholders to submit feedback by February 25, 2025, and attend the Freight Classification Development Council (FCDC) meeting on March 3, 2025, in Clearwater Beach, Florida.
For additional details, updates, and resources on these upcoming changes, visit NMFTA’s official website.
Trump Announces Plan for Reciprocal Tariffs on US Trading Partners
Aims to match tariffs imposed on American goods worldwide
President Donald Trump has announced a plan to introduce reciprocal tariffs, meaning the United States will charge the same tariffs on imported goods that other countries place on American products. He explained that this is about fairness, ensuring that US businesses are not at a disadvantage. Under the new policy, if a country imposes a tax or tariff on US goods, the United States will respond with an identical tariff. Trump’s Cabinet has been directed to review trade policies with each country and submit a report within 180 days to evaluate how these changes will impact the economy. While Trump did not call out any specific countries, some analysts believe this could be aimed at China, the European Union, and Mexico, which have different tax and tariff structures affecting US exports.
This policy has the potential to reshape global trade, but it may also lead to higher costs for imported goods in the United States. Some businesses that rely on international trade are preparing for possible price increases, while others support the move as a way to push for more balanced trade agreements. The global supply chain could see shifts as countries assess how to respond. Trump has previously used tariffs as a tool to encourage manufacturing in the US, and this new plan continues that strategy.
India Unveils Plans for National Container Shipping Line
Initiative aims to boost maritime trade and reduce reliance on foreign vessels
India has announced plans to launch Bharat Container Line, a national container shipping company designed to enhance the country’s presence in global maritime trade. The initiative aims to reduce dependence on foreign-flagged vessels and strengthen control over export-import activities. The project will start with a fleet of 100 container ships, focusing initially on key trade routes across Asia, the Middle East, and the Red Sea, with future expansions planned for Europe, Africa, and the Americas. This move is part of a broader strategy to position India as a significant player in international shipping and logistics.
In addition to establishing Bharat Container Line, the Indian government has introduced a $3 billion Maritime Development Fund to support the domestic shipbuilding and repair industry. The fund, with 49% government contribution and the remainder from ports and private entities, aims to provide long-term financing for maritime infrastructure projects. This financial commitment aligns with Prime Minister Narendra Modi’s vision to transform India into a developed nation by 2047, enhancing the country’s maritime capabilities and reducing reliance on foreign shipping services.
White House Announces Changes to Aluminum and Steel Tariffs
New measures aim to protect U.S. industries and national security
The White House has announced significant changes to tariffs on imported steel and aluminum, effective March 12, 2025. The existing 25% tariff on steel imports will now apply to all countries, removing previous exemptions. Additionally, the tariff on aluminum imports will increase from 10% to 25% and will also extend to all nations. Agreements with countries such as Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, Ukraine, and the United Kingdom have been terminated, and no new exclusions will be granted. Current exclusions will remain valid until their expiration or until the specified import volume is reached. The tariffs will also expand to include additional derivative articles, which will be identified in future proclamations. Furthermore, duty drawbacks will not be allowed on these tariffs. These measures aim to bolster domestic production and address concerns over national security related to steel and aluminum imports.
The decision to adjust these tariffs comes in response to findings that previous measures were insufficient in protecting U.S. industries from the adverse effects of increased imports and global overcapacity. The Secretary of Commerce reported that, despite initial tariffs, imports from certain countries had risen significantly, and global steel overcapacity was projected to reach approximately 630 million metric tons by 2026. These factors prompted the administration to take more comprehensive action to safeguard national security and support the domestic steel and aluminum industries.
For more details, please refer to the official proclamation: Adjusting Imports of Steel into The United States.
CPKC Opens Patrick J. Ottensmeyer International Railway Bridge
New bridge enhances U.S.-Mexico rail trade capacity
Canadian Pacific Kansas City (CPKC) has officially opened the Patrick J. Ottensmeyer International Railway Bridge, a significant development aimed at improving rail traffic between the United States and Mexico. This new bridge, which spans the Rio Grande between Laredo, Texas, and Nuevo Laredo, Tamaulipas, is expected to double the freight capacity at this critical border crossing. The $100 million project, completed in December 2024, was commemorated with a ribbon-cutting ceremony in February 2025. The bridge is named in honor of Patrick J. Ottensmeyer, the last president and CEO of Kansas City Southern, who passed away in July 2024.
The new 1,170-foot-long bridge, constructed just 35 feet downstream from the original 1920s-era bridge, features six reinforced concrete piers and a ballasted deck plate girder design. It includes advanced security measures such as an X-ray railcar inspection system and surveillance cameras to ensure safe and efficient cross-border operations. This infrastructure not only alleviates previous bottlenecks caused by directional-running windows but also enhances the overall capacity and security of the busiest rail gateway between the U.S. and Mexico.
New Orleans Public Belt Railroad and Gulf Gateway Terminal Expand Storage Capacity
Enhancements aim to improve global supply chain efficiencies
The New Orleans Public Belt Railroad (NOPB) and Gulf Gateway Terminal LLC (GGT) have announced an expansion of their liquid bulk storage facilities at the Port of New Orleans. This development doubles GGT’s storage capacity to 260,000 barrels, with plans to add an additional tank each year over the next decade. Situated on over 40 acres of port-owned property, GGT’s facility offers direct access to all six Class I railroads through NOPB, enabling efficient distribution to destinations across North America. This strategic location enhances the movement of freight throughout the United States, Canada, and Mexico.
This expansion is part of a broader initiative to boost the port’s role in the global supply chain. By increasing storage and improving rail connectivity, NOPB and GGT aim to streamline the transfer of liquid bulk products, thereby enhancing operational efficiency and meeting the growing demands of international trade. This project underscores the commitment to supporting economic growth and providing robust infrastructure for the seamless movement of goods.
Airfreight Rates Steady Amid E-commerce Challenges
Market remains resilient despite policy shifts and seasonal factors
Airfreight rates have remained stable over the past week, even with potential disruptions from new U.S. tariffs on Chinese goods, the temporary suspension of the de minimis exemption, and the Lunar New Year slowdown. The Baltic Air Freight Index indicates a 1.7% week-on-week increase and a 12.8% rise compared to the same period last year. Notably, rates from Shanghai to Europe and the U.S. saw an 8.1% weekly increase, while Hong Kong experienced a slight 0.9% decline but remains 14.2% higher than last year. The resilience in airfreight rates comes despite a recent policy change where the U.S. briefly eliminated the de minimis exemption for low-value imports from China, leading to e-commerce flight cancellations and volume declines. However, this policy was quickly reversed due to significant logistical challenges, including package backlogs at major airports. Industry analysts suggest that the current firmness in airfreight rates reflects the market’s ability to adapt to policy fluctuations and seasonal demand variations.
As the global supply chain continues to evolve, staying informed is more important than ever. From tariff changes to freight classifications and emerging trade policies, these shifts present both challenges and opportunities. At Southern Star Navigation, we’re here to help you navigate these complexities with expert insights and tailored logistics solutions.
📞 Have questions or need guidance? Give us a call at 833-782-7628 Ext. 1 or visit southernstarnavigation.com to learn how we can support your supply chain needs. Let’s keep your business moving forward! 🚢